Ghana's Baby Diaper market grows rapidly, with Le Shushi leading the way with its localization strategy

Ghana's Baby Diaper Market Enters a Rapid Growth Period: Softcare Leads the Way, Localization and Cost-effectiveness Are the Keys

Accra, Ghana - In recent years, Ghana's baby diaper market has shown a booming trend. With the increase in the number of newborns and the change in consumer concepts, this field is becoming a "new blue ocean" in Africa's fast-moving consumer goods market. According to industry data, the size of Africa's baby diaper market will reach US$3.6 billion in 2023, and is expected to grow to US$5.2 billion in 2028, with a compound annual growth rate (CAGR) of 8%. As a major market in West Africa, Ghana has performed particularly well in this wave of baby diaper growth.

Softcare leads the market, and localization strategy is effective

Softcare, a Chinese sanitary products company, has taken a leading position in the baby diaper market in Ghana and Africa with its deep localization layout. In 2023, the company will occupy 20% of the African baby diaper market in terms of sales, and Ghana's market share will remain the largest. Le Shu Shu has 8 factories in Ghana with an annual production capacity of more than 5.5 billion baby diapers, covering different consumer groups through the "multi-brand + affordable" strategy. Its core brand Softcare is positioned as a mid-to-high-end baby diaper with a repurchase rate of up to 95.7%, while the mass brand Cuettie attracts price-sensitive consumers with affordable prices.

Competition is fierce between international giants and local brands

Although Le Shu Shu has an advantage, competition in the baby diaper market is not easy. International giants Pampers and Huggies occupy the high-end baby diaper market with brand awareness, but their market share growth is limited due to supply chain and pricing strategy constraints. At the same time, local Ghanaian brands such as Dear Cupid are gradually rising, relying on local channels and low-price strategies to share the baby diaper market. Le Shu Shu needs to continue to strengthen the resilience of its supply chain and consolidate its advantages through quality control.

Consumer preferences: both cost-effectiveness and convenience

When Ghanaian consumers buy baby diapers, cost-effectiveness is still the primary consideration. Le Shushi's baby diaper retail price of about 9.3 yuan per pack is very popular, while international brands mainly serve niche groups due to their high prices. In addition, consumers have higher requirements for the quality of baby diapers, and problems such as urine leakage and allergies have become "points for deduction" for brands. In market feedback, the call for convenience improvements such as sunscreen packaging and independent small packages is growing.

Policy dividends and digital opportunities, future growth is expected

The Ghanaian government's "one district, one factory" policy provides tax exemptions for local baby diaper production, attracting companies such as Le Shushi to expand investment. At the same time, digitalization of the baby diaper supply chain has become a new trend. At present, 80% of transactions in the Ghanaian baby diaper market still rely on traditional offline channels, but B2B e-commerce platforms are gradually emerging, which is expected to solve the problem of regional shortages. Experts suggest that brands can develop procurement apps to simplify processes and improve efficiency.

Challenges and responses: quality control and channel innovation in parallel

Faced with the double attack of "localization" of international brands and "high-end" of local brands, Le Shushi needs to balance expansion and risk control. On the one hand, strengthen the quality control of baby diaper production to avoid quality problems that erode brand trust; on the other hand, explore the potential of e-commerce channels, especially promote online baby diaper purchases for young consumers. In addition, reducing the risk of out-of-stock through dynamic inventory management is also the key to consolidating market position.

Conclusion

The rapid growth of the baby diaper market in Ghana reflects the huge consumption potential of emerging markets in Africa. For Chinese companies, Le Shushi's "localization + multi-brand" strategy provides a model for going overseas. In the future, with the release of policy dividends and the acceleration of digitalization, this baby diaper market may have more opportunities.